Wednesday, March 19 14:57:53
US-based Horizon Pharma said it would buy privately held, Dublin-based specialty pharmaceutical company Vidara Therapeutics International through a reverse merger for stock and cash valued at about $660 million.
Horizon Pharma said the resulting company, Horizon Pharma Plc, would be 26pc owned by shareholders of Vidara, which has operations in Ireland and the United States.
The deal is the latest in a series of transactions structured to take advantage of Ireland's low tax rates.
U.S. drugmaker Perrigo Co. Plc bought Irish firm Elan for $8.6 billion in December. Endo Health Solutions acquired Canadian drugmaker Paladin in a deal that creates a new holding company based in Ireland that will own both firms.
Horizon Pharma said today the stock-and-cash deal would create a new company, Horizon Pharma Plc, which would be 26 percent owned by Vidara shareholders. They will also receive $200 million in cash.
The deal adds Vidara's genetic disorder drug Actimmune to Horizon's four drugs used to treat different forms of arthritis. Actimmune generated $58.9 million in sales in 2013.
Horizon Pharma Plc, which will be headed by Horizon CEO Timothy Walbert, is expected to generate pro-forma full-year revenue of $250 million-$265 million.
Horizon said it had secured a $250 million bridge loan funding from Deerfield Management Company LP.
Citigroup Global Markets Inc acted as lead financial adviser to Horizon Pharma and JMP Securities LLC served as co-financial adviser.
KPMG LLP served as Horizon's tax adviser and Cooley LLP and Dublin-based McCann FitzGerald were the legal advisors.